Assume the following bid and ask rates of the pound for two banks as shown below Bank D Bank C Bid $1.26 $1.24 ASK $1.27 $1.25 As locational arbitrage occurs: the bid rate for pounds at Bank D will decrease, the ask rate for pounds at Bank C will decrease. the bid rate for pounds at Bank D will increase, the ask rate for pounds at Bank C will increase the bid rate for pounds at Bank D will decrease; the ask rate for pounds at Bank C will increase O the bid rate for pounds at Bank D will increase the ask rate for pounds at Bank C will decrease